DoraFactory Hack

Reported loss $42K
Other

What happened

DoraFactory lost 7,872 DORA when the ChainSwap cross-chain bridge was exploited on 11 July 2021. ChainSwap was the bridge DoraFactory used for cross-chain DORA liquidity. The attacker took the tokens from the bridge contract and sold them straight away on Uniswap. DoraFactory said the loss was worth less than $50,000; the figure shown here is $42,373. Most of the tokens belonged to the DoraFactory foundation and had been placed on the bridge to provide cross-chain liquidity.

DoraFactory's own contracts were not the target. ChainSwap said a logic flaw in its bridge quota code let non-whitelisted addresses raise withdrawal quotas; about 20 assets worth roughly $4 million were taken across projects. ChainSwap promised to cover DoraFactory's loss, took the bridge offline and froze mapping tokens. DoraFactory pulled all of its cross-chain DeFi liquidity until it had a secure alternative.

How it happened

  1. ChainSwap's bridge let signer nodes raise a token's cross-chain quota automatically, so a valid claim needed signatures from addresses that had quota.
  2. Because of a logic flaw, addresses that were not whitelisted signers could also raise the quota. Rekt reports that the attacker called the bridge's receive function, supplying a fresh address as the signature in each call and paying only a small fee.
  3. The bridge accepted these claims and released tokens it held, 7,872 DORA among them.
  4. The attacker sold the DORA on Uniswap right away.

Protocol details

Classification Other
Protocol Type Exploit/Other
Affected asset / contract DORA
Protocol links Website @DoraFactory

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